Nasdaq, S&P, Dow futures rise in green ahead of inflation report (SPX)

Stock index futures were higher on Friday as traders looked ahead to key inflation data due later today.

S&P 500 Futures (Spence) +0.5%Nasdaq 100 Futures (US100:IND) +0.7% and Dow futures (India) +0.2%.

10-Year Treasury Yield (US10Y)) was unchanged at 3.86%. The 2-year yield (2 years in the US) remained unchanged at 3.91%.

U.S. stocks ended mixed on Thursday, with early gains being eroded by the afternoon selloff and the session-long declines following the earnings report from semiconductor giant Nvidia (NVDA), which boosted investor sentiment after data showed stronger-than-expected economic growth in the second quarter.

“Risk assets have performed well over the last 24 hours, as robust U.S. data has overwhelmed investor disappointment over Nvidia’s recent results,” said Henry Allen of Deutsche Bank.

“The general consensus was that based on all the data, the economy was doing better than expected and the Fed was less likely to cut rates by another 50 basis points,” Allen said.

Investors are now looking ahead to the July core personal consumption expenditures price index report, which is due out before the economic close.

The Fed’s preferred inflation measure is expected to show a 0.2% M/M increase in July, the same rate as in June. On a year-over-year basis, it is expected to increase to 2.7% from 2.6% in June. Core PCE excludes food and energy prices, which can fluctuate widely from month to month.

The PCE price index, which includes food and energy, is expected to rise 0.2% in July from 0.1% in June, and is expected to be unchanged from the previous month, rising 2.5% from a year ago.

“The disinflation data continues today. The July personal consumer expenditures deflator is expected to show a fairly stable inflation rate. It’s worth remembering that even if inflation falls due to owner-occupied rents, this does not change the purchasing power of any U.S. household,” said Paul Donovan of UBS.

Other economic reports today include the August Chicago PMI and the August Consumer Confidence Index, with the former expected to hit 45 and the latter expected to hit 67.8.